Sustainable Use of Gas in Israel - Assignment Example

Sustainable Use of Gas in Israel Executive summary Gas is one of Israel’s main natural resources. Due to increased exploration in the region, there have been considerable gas discoveries in the region. This has put Israel in a critical position as one of the leading producers of gas in the world. 60% of the gas is used within the country while the rest is exported to other nations. All over the world, there is a high demand for energy sources and as such there is a high demand for these gas products. The gas industry in Israel is fairly recent; the first gas deposits were found in the country in the 1990s. Since then, other deposits have been found on the shores of Israel along the Mediterranean Sea. Initially, all the gas deposits were for exportation, but since 2004, there has been an increase in the demand for gas within the local economy. Industries were growing and the energy demand of the country was rising. However, the extraction of gas has numerous effects on the environment. This is made worse by the fact that drilling of gas is done in the sea as this endangers the marine life. Most drilling companies do not adhere to the strict environmental regulations due to the offshore nature of this activity. However, in the recent past there have been instances that have resulted in spillages in the sea and this has brought to light the activities of these offshore companies. The main role of this project is therefore to come up with a framework by which the gas companies can operate sustainable businesses by considering the impact that this industry has on the environment. Key Words Sustainability: this means the ability to be used without being depleted. Extraction: the process of obtaining natural resources from the earth and seas. Gas fields: the sites where gas deposits are located. Resources: this is the supply of a given commodity that can be used profitably. Energy: refers to usable power obtained from natural resources Topic overview The country of Israel is well endowed with natural resources. Most of this has been in the oil sector with the country having many refineries. In 2009, the Tamar natural gas deposits were found off the coast of Haifa, Israel. This discovery marked a major turnaround in the energy sector for Israel (Cohn 2010). The Tamar gas fields is one of the largest natural gas deposits in the world and has the potential to meet all the energy requirements of Israel for the next 20 or 30 years. This was however only the beginning because in the next year there was discovery of several other deposits in Leviathan and Tanin. The Leviathan deposit is twice as big as the Tamar deposit. This marked a major shift in the fortunes of Israel as it begun to exploit these natural resources. The location of Israel next to the major oil producers in the world had not helped it meet its energy demand given the hostile relations between Israel and most of these nations. Israel can now claim its position as one of the major gas producers and energy suppliers in the world (Hagger 2010). The discovery of gas has shifted focus from where the country can obtain secure energy supplies to the question of how the country will deal with the new found abundance in energy supply. It has resulted on a direct impact on the economy with all energy needing sectors feeling the impact. Previously, Israel depended on its Arab neighbors for oil imports although this has been marked with a lot of dispute. It obtained the Sinai oil fields in 1967 but this was later surrendered to Egypt as part of peace treaty, although it secured written assurances about its future energy supplies. One of these was an agreement in 2005 for Egypt to provide gas to Israel via pipeline. This agreement was however ended as Israel sort to establish more secure energy sources that could not be affected by external factors. Within a few years, natural gas has grown to become the main fuel for generation of electricity for the major industries in Israel.it has resulted in reduction of pollutant emissions because of the declining use of coal and gas (Hagger 2010). This uptake of natural gas is set to increase due to various factors such as; more reserves have been discovered hence more production of gas, the distribution systems and transmission systems are being upgraded. The Israeli energy ministry has put policies in place that will ensue that there is a steady supply of this important resource, the highlights of these policies are securing a steady supply, issuing licenses for development of infrastructure, ensuring protection of consumers and encouraging competition within the industry. Given that the infrastructure system for the use of Gas is based on a series of pipes that connects the entire nation, it is readily available for any consumer who wants to use it within the country (Cohn 2010). There has been accelerated growth in the use of gas in Israel and this is set to increase in the coming years. Most of this demand will be used to generate electricity while the rest will be used by industries in the country. Key findings The exploration and production of gas has various impacts on biodiversity. The positive impacts of the exploration are that it boosts the economy of the country. The country spends less on importing energy from other countries and these finances are used elsewhere. Israel has also started exporting gas to its neighbors and this is an additional revenue stream that has been generated for the country (Victor 2006). Given that energy is available locally, the industries can increase their output and this also contributes to the economy. An important factor that I brought about by the gas companies is employment opportunities and avenues for entrepreneurship. There is increase in the demand for skilled labor in the gas industry. Although most of the technology for gas exploration and extraction is from the foreign companies, the locals get a chance to learn how to work with them and employment opportunities on the gas rigs. Increase in use of gas also means that there are other industries that expand and these also employ more people. The discovery of gas in Israel has had massive effects on the economy and this is commendable (Hilyard 2008). However, there are quite a number of negative effects that have emerged from the production of gas in Israel. These factors have to be considered so that the production of gas can be sustainable in the long run. Gas exploration leads to water pollution, contamination from proper waste disposals, and degradation of the ecosystem both onshore and offshore. There are several pollutants that emerge due to gas exploration. These are discussed below plus the measures that have to be put in place to ensure gas exploration are sustainable. Chemical discharge is the main pollutant due to gas exploration. The use of chemicals cannot be stopped given that it plays a major role in the production process. Chemicals are used in the drilling process and other production operations on the rig such as turbine and rig washes. Apart from a host of other functions, they are used to maintain the pipelines and ensure they are free from biocides and oxygen scavengers (Popper 2009). When these chemical wastes are released into o the sea, it has massive effects on the marine life. There are acute and long term toxic effects on the organisms in the sea. This is because the chemicals give rise to hormonal interference, mutagenic and reprotoxic effects. When this chemical levels increase, it affects the entire food chain and as a result there is exposure to top predators such as sea birds and humans. The severe biological effects can go beyond individual organisms to the entire population. This has severe consequences on the composition of the ecosystem. Produced water that is found with the gas deposits is also hazardous to the marine life. This is because it contains various hazardous substances such as hydrocarbons, radioactive matter, alkyl phenols and aromatic hydrocarbons. Produced water is usually discharged back to the sea and therefore has the potential of harming marine life. These acts of pollution can result in severe effects that can surpass the economic benefits of gas exploration. Considering the need for sustainability, industries in this sector can undertake a number of activities to ensure that these effects are minimized. Income from gas should be used to fund sustainable energy It is the duty of the current generation to secure the financial freedom of future generations. Given that most gas deposits have a fixed amount of gas in them, the companies should set aside money to be used to fund research into ways of producing green energy. This means finding of ways to develop renewable energy sources (Victor 2006). This will ensure that the energy needs of the country are guaranteed in the long run. Development of an environmental fund Gas reserves are obtained from nature; this means that nature has to be taken care of to ensure its continued productivity. There should be a certain percentage of the profits of the gas industries that should be set aside to form the environmental fund. Companies that also use gas as a source of energy should be encouraged to also contribute to this fund. The main aim of this fund would be to run environment saving activities such as cleaning the ocean to protect marine life, planting trees and ensuring safe disposal of by products from the production process. This will ensure that the environment is kept safe and gas exploration can safely go on for a long time in future. Analysis and conclusion Gas deposits are located in various parts of the world. It is not specific to any given region. Gas exploration began in 1857 and has occurred for many years in various parts of the world. However, it is not a renewable source of energy and is usually depleted over the course of time. Ever since exploration of oil began, there are very many oil wells that have run dry and this is an indication that over time, the supply of gas will be depleted (Hilyard 2008). As a result, we have to come up with ways to ensure that we make maximum use of this resource for as long as we can. Exploitation of gas has resulted in the need for skilled labour in various parts of the world. As such people are getting education in this sectors and getting employed. This results in the availability of disposable incomes and therefore they can improve their social status. Gas exploitation has also resulted in migration in several parts of the world. An example is in Gabon, where discovery of gas deposits led to the emergence of a town with over 6000 people. This included labourer and the other supportive businesses. The benefit to be obtained from gas exploitation is huge and as such people are willing to migrate from their home towns to go nearer to these areas. One unique factor about gas is the manner in which it is transported. The main mode for transportation of gas is through a series of pipes. These pipes connect the rigs to the processing station after which it flows under high pressure through wide pipes. This is the national transmission system that connects the entire country (Victor 2006). At various points in the country, the gas gets to smaller, low pressure pipelines within the distribution network for transmission to the various consumers. All industries that are in operation today know the importance of energy in the running of their daily operations. Energy is a key factor and can determine the success or failure of a business. However, most energy sources that are used also come with a secondary burden, known as pollution (Popper 2009). This means that in the quest to operate, businesses directly pollute the environment. Gas on the other hand has fewer emissions that other forms of energy and is a most preferred source of fuel. It is not only more efficient in terms of logistics but also conserves the environment. At the beginning of this task I did not know the influence that energy sources plays on the operation of industries. The data collection phase enabled me to interact with various people in this industry who provided invaluable information in regards to this subject. As the research progressed, I learnt that businesses have to closely balance the production of their products to the amount of wastes that they are producing. Most of the times, the amount of pollution that comes from industries cannot be stopped, what can be done is to come up with clean energy sources or involvement of the industries in programs to ensure the environment is kept clean. Businesses can also find a mix between the use of various energy sources as they strive to protect the environment while maintaining the level of output of their products. This can help relieve pressure from natural resources. If I were a business person whose company requires gas as a basic resource, I would gladly contribute to an environmental fund because I fully understand the effects that emerge due to the exploitation of this resource. In this way, the environment will be kept safe and we can be assured of this natural resource for a long period of time. Bibliography: POPPER, S. W. (2009). Natural gas and Israel's energy future near-term decisions from a strategic perspective. Santa Monica, CA, RAND COHN, M. (2010). Energy law in Israel. Alphen aan den Rijn, The Netherlands, Kluwer Law International. HILYARD, JOSEPH. (2008). 2008 International Petroleum Encyclopedia. Pennwell Corp. HAGGER, N. (2010). Armageddon. Ropley, O Books. ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT. (1978). Economic surveys: Australia. Paris, O.E.C.D. NATO ADVANCED RESEARCH WORKSHOP ON EMERGING THREATS TO ENERGY SECURITY AND STABILITY, MCPHERSON, H., WOOD, W. D., & ROBINSON, D. M. (2005). Emerging threats to energy security and stability. Dordrecht, Springer. VICTOR, D. G., JAFFE, A., & HAYES, M. H. (2006). Natural gas and geopolitics from 1970 to 2040. Cambridge, Cambridge University Press. Read More